Valli Arunachalam files notices against Murugappa family members for rejecting her proposal

Valli Arunachalam together with her mother and sister have issued a legal notice to the Murugappa family members, Ambadi Investments, and other people in relation to implementing her father's will.

The development comes after the family members of the Murugappa Group voted overwhelmingly against the proposal to appoint Valli Arunachalam on the board of Ambadi Investments Ltd (AIL), in company’s annual general meeting (AGM) on September 21. AIL is a holding company of over $ 5 billion Murugappa Group.


“On behalf of my mother, sister and me, I can hereby confirm that following careful and thorough deliberation and in consultation with our independent advisors, we have decided to seek legal remedies with respect to our ongoing efforts to settle my father’s will,” said Valli Arunachalam in her statement. “It was a big step for us and a very unfortunate one, as we have worked tirelessly over the course of the last three years to bring about an amicable settlement of my father’s interests in AIL. With the family voting unanimously to reject my appointment to the AIL board, we have seemingly reached the end of the road for an amicable settlement.”

On Friday, Arunachalam (59 years) said, "It would be impossible to enumerate each step we have taken over the last three years but we can assure you that we, together with our advisors, have taken the ‘leave no stone unturned’ approach in an effort to bring about an amicable settlement."

“Given how the Murugappa family has treated our family branch over the past three years, we have no confidence that our substantial stake in the family business will be safeguarded by them,” said Arunachalam, a nuclear engineer by training. “Perhaps most confounding to us is that the Murugappa family has attempted to project their stand as principled and righteous.”

Arunachalam (59) is negotiating with other family members to succeed her late father, former patriarch of the group MV Murugappan, as a member of the male-only board of the holding company. Along with her mother and a sister, she owns about 8.15% in the AIL.

The shareholders voted out the resolution with 91.37% of the total votes rejecting her proposed appointment.

“A considerable portion of my late father’s estate is tied to AIL, and it is entirely unreasonable to expect my family to relinquish control and visibility over these holdings to the broader Murugappa family,” said Arunachalam. “To date, no logical or legally valid explanation has been provided by the Murugappa family as to why my family should be subordinated in this manner.”

New York-based Arunachalam said, they have complete faith in the judiciary and are emboldened by some of the recent decisions. “We are confident that justice will prevail,” she said.

Founded in 1900, the Murugappa Group currently controls more than two dozen companies, including nine listed ones--Coromandel International, EID Parry (India), Shanthi Gears, Carborundum Universal, Tube Investments of India, Wendt (India), Cholamandalam Financial Holdings and Cholamandalam Investment & Finance Company among others.